Investment Q&A

Q: All three oil companies have reduced dividend by 40% to 50%.
Are they going to have further cut if oil stays at 20's a barrel for a while, say, to the end of 2016?
Your thoughts please.
Thanks!
Jim

Q: Unfortunately, I have held this one for the past year and watched it come all the way down. Given the IEA suggests we are a wash in oil through the end of 2016 and prices are likely to languish for longer what are odds on a scale (1-10) Baytex has to to file for bankruptcy? At $2 it's still worth something as opposed to zero. Do the odds favour selling here? Would your recommend welling now and walking away as opposed to waiting it out risking zero?

Thank you

Q: I currently have a holding in LRE which has a buy-out offer of $0.52 on the table from an anonymous Chinese company. I think this is to be voted on in February. Would it pe prudent to sell now at .30 or wait for the outcome at .52. By the way, Peter's appearance on BNN Friday was the most realistic advice I have heard anywhere since this downturn. Thans, John

Q: I have gone through homepage and financials of wcp and surge. My question is this; of the hedges that were in place for 2015 and pending 2016, how many of these were actually carried out at these prices? It seems to me if they were all carried out, these two companies would be in the black.
On a related note, if oil futures are going down, why is US and Saudi Arabia pumping and selling the oil glut. It seems to me that this is done deliberately to flush out all the other countries, and would leave US and Saudi controlling the future oil production. Just look at the price of TCW, CFW, PD. FRC. and many others. These companies are on there last legs and will be bought out or cease activities. Are there others who believe like I do? Thanks, this has been on my mind for several years. Sorry to be a pain.

Q: hi folks:

I own important, yet relatively small amounts of these energy related service co's

canyon (frc); Gibson (gei); McCoy (mcb); strad (sdy)

is there any obvious reason to sell any of them?

fairly sure they are all well run and simply affected by the obvious oil decline

what are your concerns on each one, and what order would you
buy more?

thanks in advance

Q: Hello 5i!
I have the following O&G related stocks: BAD(-20%), BNK (-87%), CVX.us(-12%), ENB(-15%), EPD.us(+12%), HWO(-9%), MCR(-43%), PEY (-30%), PRW(-68%), RRX(-26%), SGY(-74%), TOG(+4%), TOU(-58%), VET(-51%) & WCP(-40%).

I am thinking cutting down the number of positions to about 6, or whatever makes sense to have a good balance with a growth profile. I understand some of the above offer services, and BAD is not 100% tied to the energy sector, you may put these aside for the exercise if required.

Biggest losers by $ are BNK, SGY, TOU & VET and I can claim tax loss for each of them.

Based on your knowledge, which one should I keep in the list?
Also, what are your thoughts on selling everything I can claim tax loss and wait a month before getting back into the market based on the current market outlook?
I recently started to average down and it seems I could be doing that for a few months! I am setting up things for the long term and can handle risk.
Thank you so much for your usual great services!

Q: Which would you prefer in the refining space, Holly Frontier (HFC.US) or Valero (VLO.US) and why?

Q: I would appreciate your opinion on which of the three oil producers I mention are best positioned for a dramatic turnaround whether due to takeover or a reversal in oil's fortunes. On a related note, which is your preferred choice of pipeline company from a reliability of dividend perspective?
Thanks for all you do.

Q: Hi Peter and associates:
On Dec 29, commodities on Bnn, Andrew Bell had a list of Canadian oil co,s which are the largest producers of condensate
also known as Diluent, used for shipping bitumen. I wanted this list but BNN did not record the clip of this part of the show.
Could you provide the names of Canadian oil co's which produce it. Also, I submitted a question on the night of Jan 11 and have not received a reply. I appreciate your help.
Thanks,
Ben.

Q: Hello,
I have a tendency to over diversify: there are so many names I want to own. Subscribing to newsletters like Money Letter, Money Reporter, Investment Reporter and religiously watching BNN/MarketCall fuels the fire. That said, I’m trying to trim down a bit. I have a 5-10 year time horizon (Easier said than done..)
These energy names make up 10% of my portfolio. I’ve obviously rode them down along the way, so I’m hesitant to sell. The moment I do, they’ll roar right back..haha.
I want to participate in the turnaround and I want the dividend yield.
Am I over exposed in energy?
What do you suggest?

ARX 11%
CPG 11%
FRU 13%
ERF 11%
HSE 14%
WCP 10%
PEY 11%
CEU 19%

I haven’t read much about the 5i Portfolio Analysis service. Are you guys still offering it?

Thank you!!

Q: Could you give an update on your thoughts for SPE, bearing in mind the common concern of survivablity? Thanks

Q: What do you think of cnq at this level, trading below book, at this level appears to be a buy. Is the balance sheet good enought to get them through this ???

Q: I glean the pundits sensing a capitulation in the energy stock pricing... as well perhaps with the price of crude. Having a 4 or 5 year 'level of patience', might you suggest this timing as a buying opportunity? If so, which Canadian companies would you suggest as opportune buys?

Q: Recent press releases from the company have argued that"a low oil price is good for NAT." According to what logic can this be so? Thanks.

Q: hi.Could you tell me what is expected re dividend? Just bought some more This AM. Am I goofy. Thanks for all you do. Regards Cliff

Q: hello Peter and 51 team,
We enjoyed reading Peter's editorial in the January Money saver. He makes a point that your portfolio should be well diversified, has a cash cushion, and has gotten rid of the loser companies. We are well diversified, and have a cash portion. We have 2 losers that we haven't sold yet. Our question is should we sell Cenovus and Cannacord genuity? What would be a better alternative.
thank you

Q: 5i Team -

Can you please provide your analysis on Whitecap Resources? What is their debt/cash flow? Can they survive with $30 WTI over the next Year? How does WCP stack up against CPG? Thank You!

Q: What do you think of buying Gibson Energy for future growth and dividend payments? How safe is the dividend? Am looking for 3-5 year plan. Also, does not the commodity price tend to overshoot both up and down? I recall selling my HOD.To and SLV when silver came close to $50 and oil in 2008 or 2009 came way up when Goldman-Sachs said it was going to $200 a barrel. I recall the high overshoots were both spikes and did not last long. Do you expect the low price of oil to be a spike and return to 45-55? Thanks. A great service that you do.

Q: Sold 1000 sh of 2000 that I own at 3.59 for a 2700$ loss. How safe is the next 1000 sh. Thanks James
Also, if I give permission to be viewed do I also receive an email. If so viewing is not a problem

Q: I am not sure the insiders are in the same boat as investors on this one. Over 14 million dollars sold this year and over 3 million dollars by the CEO ( 20 % of ceo holdings sold).CPG is similar to WCP in net selling. SGY mean while has net buying of 2 million dollars with the CEO buying a million dollars himself. Comments please.